OREANDA-NEWS  The European Commission has proposed to set the price ceiling for Russian gas at $3,000 per thousand cubic meters. This is stated in a press release published on the EC website.

According to the proposals of the members of the European Commission, which were received on November 22, it is necessary to set the maximum upper price for energy at the level of 275 euros per megawatt-hour or $ 3,000 per thousand cubic meters at the current exchange rate under the contract for a month in advance.

This measure will be applied at the TTF gas hub in the Netherlands. The price level in the market is proposed to be adjusted automatically to avoid an imbalance.

The European Commission considers it permissible to intervene if the cost of gas exceeds the established mark for two weeks, or if the spread between the TTF price and the global price of liquefied natural gas is 58 euros or more within 10 trading days. The mechanism can be activated from January 1, 2023, the EC indicated.

In early November, it was reported that the European Commission questioned the effectiveness of the gas price ceiling to protect against the energy crisis and proposed a new plan to stabilize markets.